If I have to declare bankruptcy will that clear the home equity line of credit I still owe on?
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If I have to declare bankruptcy will that clear the home equity line of credit I still owe on?
Asked on December 14, 2011 under Bankruptcy Law, Florida
Answers:
Greg Wiley / Law Office of Greg Wiley PLLC
Answered 13 years ago | Contributor
Generally speaking, the Home Equity Line of Credit (HELOC) attaches to the property like a mortgage. You may have had a personal discharge of the debt but it likely still attaches to the property.
In some circumstances you can strip a second lien through a Chapter 13. You will need to discuss this with your bankruptcy attorney.
Best of Luck
Greg Wiley
www.dallas-fortworthbankruptcy.com
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